Oktober 8, 2008


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Oktober 8, 2008

Our Clients


Airlines
1. Lufthansa System Indonesia
2. Sriwijaya Air

Agro Food Industry
1. Sierad Produce

Automotive
1. Bintang Mandiri
2. Bluebird Group
3. Dwiperkasa Mobiltama
4. General Motors Indonesia
5. Nissan Motor Indonesia
6. Shindengen Indonesia

Banking/ Financial Institution/ Insurance
1. Adira Insurance
2. Armada Multi Finance
3. Asuransi Jiwasraya
4. Asuransi Tri Pakarta
5. Bank Bintang Manunggal
6. Bank Bukopin
7. Bank BTN
8. Bank Bumi Putera
9. Bank Century
10. Bank Danamon
11. Bank Index Selindo
12. Bank Mandiri
13. Bank Maspion
14. Bank Metro Express
15. Bank Negara Indonesia
16. Bank Niaga
17. Bank Rakyat Indonesia
18. Bank Rakyat Indonesia Syariah
19. Bank Swadesi
20. Banque Mees Pierson BGL S.A.
21. Bursa Efek Surabaya
22. Chinatrust Indonesia Bank
23. CIGNA Insurance
24. Citibank
25. Credit Suisse Life & Pension Indonesia
26. Dipo Star Finance
27. Karya Technik Multifinance
28. Oto Multiartha
29. Pemodalan Nasional Madani (Persero)
30. PNM Venture Capital
31. Sarijaya Multi Dana
32. Sarijaya Insurance
33. Sarijaya Permana Sekuritas
34. Sompo Japan Insurance
35. Swadharma Indotama Finance

Chemical/ Pharmacy
1. Adaro
2. Anugrah Argon Medika
3. Bayer Indonesia
4. Bernofarm
5. Chandra Asri
6. Cognis/ Henkel Indonesia
7. Capsugel Indonesia
8. Combiphar
9. Dexa-Medica
10. Dipa Pharmalab Intersains
11. Ferron Par Pharmaceuticals
12. Grace Specialty Chemical Indonesia
13. Hexpharm Jaya
14. Indofarma
15. Kimia Yasa
16. Millennium Pharmacon International Tbk.
17. Senatama Laboranusa
18. Surya Delta Maju
19. Rentokil Indonesia
20. Tritunggal Selaras
21. Wigo Distribusi Farmasi
22. YKK AP Indonesia

Consultant
1. Asia Abdijaya Sentosa
2. Chelsea Design
3. Dunamis
4. GL Nusantara
5. Hajadi & Associate
6. Human Capital
7. Indoconsult
8. Japan Agency Consultant Indonesia
9. John Clements Consultants Indonesia
10. Kita Communication
11. Mitra Diva
12. Notaris Irawan
13. Star Performa
14. Synergy Consultant
15. Talenta
16. Teleperformance Indonesia
17. Thomas International
18. Water North, Singapore

Construction
1. Arya Citra International
2. Balfour Beatty Sakti
3. Berkat Kurnia Mitra Abadi
4. Binatama Agrindo
5. Chakra Jawara
6. Citra Marga Nusapala
7. Karya Intertek Kencana/Jasira Utama
8. Jaya Obayasi
9. Pamapersada Nusantara
10. Trakindo Indonesia
11. Triparta Engineering
12. Yasa Patria Perkasa

Consumer Goods Manufacturing/ Trading
1. Bromo Tirta Lestari
2. Coca Cola Amatil, Indonesia
3. Cussons Indonesia
4. Danone Biscuits Indonesia
5. Gondowangi Kosmetika
6. Gawih Jaya
7. GE Consumer Indonesia
8. Indobiskuit
9. Indomo Mulia
10. Mitra Manggalanindo
11. Multi Bintang Indonesia
12. Multimas Nabati (Sania Group)
13. Nestle Indofood Citarasa Indonesia
14. Prima Aneka Berjaya (Indofood Group)
15. Rodamas
16. Santos Jaya Abadi
17. Sugar Group (Gulaku)
18. Sari Agrotama Persada
19. Seelindo Sejahteratama
20. Unicharm Indonesia
21. Wicaksana Overseas International
22. Wella Indonesia

Education
1. Risanda Intensive English Course
2. The British Institute
3. Yayasan BPK Penabur
4. Yayasan Don Bosco

Electronics
1. BICC Berca
2. FDK Indonesia
3. Jaya Teknik
4. Jeambo Cable Company Tbk.
5. LG Electronics Indonesia
6. Multi Teknindo Infrotronika (Phillips)
7. Teka Buana

Farm Industry
1. Primatama Karya Persada

Food & Beverage Industry
1. NissinMas

Health & Beauty
1. Erha Dermatologi Group
2. Ristra Indolab

Holding Company
1. Central Cipta Murdaya
2. Gajendra Adhi Sakti
3. Global Putra International
4. Inkoasku
5. Lucky Group
6. Maersk Indonesia
7. Omni Capital
8. Vinoti Group

Hotel/Restaurant Industry/Food Industry
1. Bumi Wiyata Hotel
2. Griya Mie Sejati (Bakmi GM)
3. Saripan Pacific Hotel
4. Talkindo Selaksa Anugrah (Bread Talk)
5. Wahana Boga Citarasa/ Sekawan Jaya

Industrial Equipment Manufacturing/ Trading
1. Atlas Copco Indonesia
2. Buana Teknik Raya/Riekerman
3. Dharma Pratama Sejati
4. Inter Print Pack/KHD
5. Komatsu Indonesia
6. Mero Sekawan Jaya
7. Pauwels Trafo Asia
8. Rehau Indonesia
9. York International

IT/ Telecommunication
1. Agranet Multicitra Siberkom
2. Alcatel Indonesia
3. Aneka Spring Telecommindo
4. Citra Sari Makmur
5. Datacom Indonesia
6. Datanet Indo Media
7. Diebold Indonesia
8. EPSON Indonesia
9. Huawei Tech Investment
10. Huawei-3Com Tech Co. Ltd.
11. Hutchison CP Telecommunication
12. Intertech
13. Infokom Elektrindo
14. Komselindo
15. Linggar Nusantaramas
16. Masaro Radiokom
17. Masindo Utama Nusantara
18. Metrodata
19. Multipolar Corp. Tbk., PT
20. Nokia PTE., LTD
21. Nortel Networks, Australia
22. Oracle Indonesia
23. Parastar
24. Ruschellcomm
25. SAP Indonesia
26. Siemens Indonesia
27. Swadharma Sarana Informatika
28. Trikomsel Citra Wahana

Logistics/ Cargo/ Shipping
1. APL Indonesia
2. UPS Cardig International
3. Citosarana Jasapratama
4. Fedex
5. FIN Logistik
6. GAC Samudera Logistics
7. Global Freight Consolidatama
8. Indonesian Marine Corp. Ltd.
9. Internusa Hasta Buana
10. JICT
11. Kalimas
12. Mandiri Abadi Sentosa
13. Mitsui Osk Lines Indonesia
14. Nippon Express
15. Pelayaran Nusantara Meratus
16. Puninar Jaya
17. Ranar Raya
18. Samudera Indonesia
19. Tempuran Mas
20. TNT Logistics
21. Windu Jaya

Manufacture
1. BW Indonesia
2. Keramika Indonesia Asosiasi, Tbk
3. Molten Alumunium Producer Indonesia
4. Multi Spunindo Jaya
5. Nike
6. Timur Raya Lestari
7. Yamaha Music Manuf. Asia

Media
1. Adikarya Visi
2. Cipta TPI
3. Femina Group
4. Femalindo Media Sejahtera
5. Global TV
6. Indika Group
7. Kelompok Kompas Gramedia
8. Jawa Post
9. Jaringan Delta Female Indonesia (JDFI)
10. Jurnalindo Aksara Grafika (Bisnis Indonesia)
11. Media Interaksi Utama (Suara Pembaruan)
12. Metro TV
13. MNC
14. Pikiran Rakyat Bandung
15. Rajawali Citra Televisi Indonesia (RCTI)
16. Radio Prambors
17. Radio Sonora
18. Solo Post
19. Surya Citra Televisi Indonesia (SCTV)
20. Tabloid Nyata
21. The Investor Group (Majalah Investor)

Mining/ Mining Equipment
1. Berau Coal
2. Boart Longyear
3. Petrosea

Oil & Gas Industry
1. Agip Lubrindo Pratama
2. Air Product
3. Adrinusa Esatama
4. Altius Adhikarsa
5. Century Dynamic Drilling
6. EMP-Kangean Ltd.
7. Exspan Peterogas Intranusa
8. Gulf Lubricant Indonesia/ Gulf Oil
9. Jasa Karya Utama
10. Kalila Petroleum Resources
11. Medco E & P Indonesia
12. Perusahaan Gas Negara (Persero) Tbk.
13. Saipem Sofresid Indonesia
14. Walinusa Energy

Packaging
1. Argha Karya Prima Industry
2. Bella Prima Perkasa
3. Detpak Indonesia
4. Innovative Plastic Packaging
5. Inti Abadi Kemasindo
6. Trias Sentosa
7. Sealed Air Indonesia
8. Toyo Ink Indonesia

Plantation
1. Jaya Mandiri Sukses
2. Multi Prima Entakai

Property Industry
1. Antilope Madju Puri Indah
2. Dutaanggada (group Gunung Sewu)
3. Grand Indonesia
4. Jaya Jurnalindo Utama
5. Metropolitan Kentjana
6. Pengelola Wisma 77
7. Tunas Perkasa

Retail Industry
1. E-pay Indonesia
2. Gilang Agung Persada
3. Matahari Putra Prima
4. Matahari Graha Fantasi (Timezone Indonesia)
5. Rezeki Makmur
6. Rusco Inti Perdana
7. Toko Buku Mizan
8. Time International

Services Industry
1. Badan Sertifikasi Management Risiko
2. Berlian Laju Tanker
3. Capricorn Mars Indotama
4. Dana Pensiun BRI
5. Dana Pensiun Sinar Kasih
6. Duta Instrument Alfa Sakti
7. Duta Media Dinamika Informasi (Media Comm)
8. Equilab International
9. Harbayu
10. HQ Global Workplaces
11. Indonesia National Air Services
12. Jasa Angkasa Semesta Tbk.
13. Kencana Duta Sarana (Kencana Tour)
14. Koperasi Karyawan Wisma Pondok Indah
15. Koperasi Nusantara Medco
16. Koperasi sejahtera usaha Bersama
17. Koperasi Telkomsel
18. Pangansari Utama
19. Radiant Utama
20. Securicor Indonesia
21. Schutter Indonesia
22. SGS Indonesia
23. Sucofindo
24. Surveyor Indonesia
25. Tata Wisata
26. VFS Private Ltd. (The Kuoni Travel Group)
27. Radinas Ekasaputra

Tire Manufacturings
1. Bridgestone Tire Indonesia

Trading/ Distribution/ Services
1. Calmic Indonesia
2. Panjasa Intradin
3. S-Tech
4. Toyota Tsusho
5. Venus Ceramica Indonesia
6. Wargi Sentosa


Site Info

Agustus 11, 2008

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Agustus 11, 2008

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About Us

Agustus 11, 2008

Under Construction


Lembaga Psikotest,Makin Diburu Sepi Pemain

Agustus 8, 2008
Jakarta,KoranHR – Sejumlah Praktisi di luar Jakarta belakangan ini mengeluhkan kurangnya lembaga psikotest yang berkualitas di luar Jakarta.Beberapa pemain yang telah mengembangkan sayapnya keluar Jakarta dinilai belum mencukupi standar yang diinginkan.Lalu kemanakah pasar akan menentukan jalannya menyikapi supply & demand yang tidak seimbang ini?

Psikotes merupakan bagian dari rangkaian seleksi sebuah lowongan kerja, yang kerap memiliki arti penting. Psikotes, percaya atau tidak, merupakan perangkat untuk menangkap kecenderungan para pelamar, yang meliputi kemampuan intelektual atau kepribadian. Dua hal ini tentunya akan disesuaikan dengan karakteristik pekerjaan yang tersedia. Beberapa lembaga psikotest biasanya masih dimonopoli oleh beberapa Universitas dan lembaga pendidikan.(Bersambung Ke halaman 3 Kol 5)

Berbeda dengan Jakarta,pasar diluar Jakarta masih terbuka lebar dan menunggu tangan-tangan para investor psikologi untuk menggebrak pasar SDM.Entah mengapa,seolah beberapa market leader lembaga psikotest yang cukup memiliki nama di Jakarta,justru menyambut dingin pasar industri ini diluar Jakarta. Padahal apabila ditilik prospek pasar yang cukup tinggi dan banyaknya demand,industri ini masih menjanjikan.

Ditilik dari prosesnya yang cukup simple,bisnis ini sangat prospektif untuk dikembangkan diliar Jakarta. Sebenarnya, proses psikotes itu sendiri cukup spesifik: dimulai dari perusahaan yang membuka lowongan kerja untuk beberapa posisi. Lalu perusahaan tersebut menetapkan sejumlah kualifikasi yang harus dipenuhi para pelamar kerja. Untuk alasan efisiensi, biasanya perusahaan tersebut meminta bantuan pada lembaga psikologi terapan untuk mengadakan psikotes yng dibutuhkan. Langkah selanjutnya, dengan gambaran kualifikasi yang ditetapkan perusahaan, lembaga tersebut berusaha menangkap kemampuan dan kecenderungan untuk memenuhi kualifikasi tersebut. Beberapa keluhan yang sering dikeluhkan oleh para pengguna jasa psikotes adalah : Ulasan Profil yang sulit dibaca/user friendly Laporan yang tidak cepat Korelasi Ulasan Psikologis dengan Job deskripsi Aspek Psikologis yang tidak segmented Biasanya terdapat 3 aspek pokok yang diungkap dalam psikotes. Ketiga aspek tersebut merupakan satu kesatuan integritas yang tidak bisa dipisahkan secara segmentatif. Hasil dari ketiga aspek ini, nantinya akan menentukan “kualitas” seseorang.
Pertama, aspek kecerdasan umum atau intelegensi yang untuk mendeteksinya, dibutuhkan sebuah alat tes yang memancing kemampuan intelegensi umum dan kemampuan khusus. Alat tes yang biasa digunakan bisa berupa tes verbal, non-verbal dan performance. Aspek kedua, karakteristik/perilaku kerja. Hal ini meliputi berbagai unsur: kecepatan, ketelitian, perencanaan dan semacamnya, biasnya disesuaikan dengan kebutuhan khusus pekerjaan.
Aspek ketiga adalah aspek kepribadian. Hal ini biasanya mencerminkan sisi-sisi unik seseorang. Untuk menggali aspek ini, dibutuhkan ketajaman dan kepekaan psikolog. Untuk menghindari hal-hal yang subyektif seperti marah atau tersinggung, dibutuhkan pengalaman yang memadai Keseluruhan hasil psikotes disesuaikan dengan kualifikasi “pesanan” perusahaan. Seseorang yang memenuhi kualifikasi, akan direkomendasikan untuk diterima. Memang, tidak semua pelamar bisa memenuhi 100 persen kualifikasi yang ditetapkan oleh sebuah perusahaan.


Outsourcing View

Juni 3, 2008
Reference : Wikipedia

Overview

Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.[2] The client organization and the supplier enter into a contractual agreement that defines the transferred services. Under the agreement the supplier acquires the means of production in the form of a transfer of people, assets and other resources from the client.

The client agrees to procure the services from the supplier for the term of the contract. Business segments typically outsourced include information technology, human resources, facilities, real estate management, and accounting. Many companies also outsource customer support and call center functions like telemarketing, customer service, market research, manufacturing, designing, web development, content writing, ghostwriting and engineering.

Outsourcing and offshoring are used interchangeably in public discourse despite important technical differences. Outsourcing involves contracting with a supplier, which may or may not involve some degree of offshoring. Offshoring is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation/company[3][4].

With increasing globalization of outsourcing companies, the distinction between outsourcing and offshoring will become less clear over time. This is evident in the increasing presence of Indian outsourcing companies in the US and UK. The globalization of outsourcing operating models has resulted in new terms such as nearshoring, noshoring, and rightshoring that reflect the changing mix of locations. This is seen in the opening of offices and operations centers by Indian companies in the U.S. and UK.[5].[6]

Multisourcing refers to large (predominantly IT) outsourcing agreements. [7] Multisourcing is a framework to enable different parts of the client business to be sourced from different suppliers. This requires a governance model that communicates strategy, clearly defines responsibility and has end-to-end integration.[8]

[edit] Process of outsourcing

[edit] Deciding to outsource
The decision to outsource is taken at a strategic level and normally requires board approval. Outsourcing is the divestiture of a business function involving the transfer of people and the sale of assets to the supplier. The process begins with the client identifying what is to be outsourced and building a business case to justify the decision. Only once a high level business case has been established for the scope of services will a search begin to choose an outsourcing partner.

[edit] Supplier proposals
A Request for Proposal (RFP) is issued to the shortlist suppliers requesting a proposal and a price.

[edit] Supplier competition
A competition is held where the client marks and scores the supplier proposals. This may involve a number of face-to-face meetings to clarify the client requirements and the supplier response. The suppliers will be qualified out until only a few remain. This is known as down select in the industry. It is normal to go into the due diligence stage with two suppliers to maintain the competition. Following due diligence the suppliers submit a “best and final offer” (BAFO) for the client to make the final down select decision to one supplier. It is not unusual for two suppliers to go into competitive negotiations.

[edit] Negotiations
The negotiations take the original RFP, the supplier proposals, BAFO submissions and convert these into the contractual agreement between the client and the supplier. This stage finalizes the documentation and the final pricing structure.

[edit] Contract finalization
At the heart of every outsourcing deal is a contractual agreement that defines how the client and the supplier will work together. This is a legally binding document and is core to the governance of the relationship. There are three significant dates that each party signs up to the contract signature date, the effective date when the contract terms become active and a service commencement date when the supplier will take over the services.

[edit] Transition
The transition will begin from the effective date and normally run until four months after service commencement date. This is the process for the staff transfer and the take-on of services.

[edit] Transformation
The Transformation is the execution of a set of projects to implement the service level agreement (SLA), to reduce the total cost of ownership (TCO) or to implement new services. Emphasis is on ‘standardisation’ and ‘centralisation’.

[edit] Ongoing service delivery
This is the execution of the agreement and lasts for the term of the contract.

[edit] Termination or renewal
Near the end of the contract term a decision will be made to terminate or renew the contract. Termination may involve taking back services (insourcing) or the transfer of services to another supplier.

[edit] Reasons for outsourcing
Organizations that outsource are seeking to realize benefits or address the following issues: [9][10][11]

Cost savings. The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called “labor arbitrage” generated by the wage gap between industrialized and developing nations.[12]
Cost restructuring. Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from variable to fixed cost and also by making variable costs more predictable.
Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement.
Knowledge. Access to intellectual property and wider experience and knowledge.[13]
Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.[14]
Operational expertise. Access to operational best practice that would be too difficult or time consuming to develop in-house.
Staffing issues. Access to a larger talent pool and a sustainable source of skills.
Capacity management. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process.
Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.
Commodification. The trend of standardizing business processes, IT Services and application services enabling businesses to intelligently buy at the right price. Allows a wide range of businesses access to services previously only available to large corporations.
Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.[15]
Time zone. A sequential task can be done during normal day shift in different time zones – to make it seamlessly available 24×7. Same/similar can be done on a longer term between earth’s hemispheres of summer/winter.
Customer Pressure. Customers may see benefits in dealing with your company, but are not happy with the performance of certain elements of the business, which they may not see a solution to except through outsourcing.

[edit] Criticisms of outsourcing

[edit] Public opinion
There is a strong public opinion regarding outsourcing (especially when combined with offshoring) that outsourcing damages a local labor market. Outsourcing is the transfer of the delivery of services which affects both jobs and individuals. It is difficult to dispute that outsourcing has a detrimental effect on individuals who face job disruption and employment insecurity; however, its supporters believe that outsourcing should bring down prices, providing greater economic benefit to all. There are legal protections in the European Union regulations called the Transfer of Undertakings (Protection of Employment). Labor laws in the United States are not as protective as those in the European Union. A study has attempted to show that public controversies about outsourcing in the U.S. have much more to do with class and ethnic tensions within the U.S. itself, than with actual impacts of outsourcing. [16]

[edit] Against shareholder views
For a publicly listed company it is the responsibility of the board to run the business for the shareholders. This means taking into consideration the views of the shareholders. Shareholders may be interested in return on investment and/or social responsibility. The board may decide that outsourcing is an appropriate strategy for the business. Shareholders have a responsibility to make their views known to the board of directors if they are against outsourcing.

[edit] Failure to realize business value
The main business criticism of outsourcing is that it fails to realize the business value that the outsourcer promised the client.

[edit] Language skills
In the area of call centers end-user-experience is deemed to be of lower quality when a service is outsourced. This is exacerbated when outsourcing is combined with off-shoring to regions where the first language and culture are different. The questionable quality is particularly evident when call centers that service the public are outsourced and offshored.

There are a number of the public who find the linguistics features such as accents, word use and phraseology different which may make call center agents difficult to understand. The visual clues that are present in face-to-face encounters are missing from the call center interactions and this also may lead to misunderstandings and difficulties.[17]

[edit] Social responsibility
Some argue that the outsourcing of jobs (particularly off-shore) exploits the lower paid workers. A contrary view is that more people are employed and benefit from paid work.

[edit] Quality of service
Quality of service is measured through a service level agreement (SLA) in the outsourcing contract. In poorly defined contracts there is no measure of quality or SLA defined. Even when an SLA exists it may not be to the same level as previously enjoyed. This may be due to the process of implementing proper objective measurement and reporting which is being done for the first time. It may also be lower quality through design to match the lower price.

There are a number of stakeholders who are affected and there is no single view of quality. The CEO may view the lower quality acceptable to meet the business needs at the right price. The retained management team may view quality as slipping compared to what they previously achieved. The end consumer of the service may also receive a change in service that is within agreed SLAs but is still perceived as inadequate. The supplier may view quality in purely meeting the defined SLAs regardless of perception or ability to do better.

Quality in terms of end-user-experience is best measured through customer satisfaction questionnaires which are professionally designed to capture an unbiased view of quality. Surveys can be one of research[18]. This allows quality to be tracked over time and also for corrective action to be identified and taken.

[edit] Staff turnover
The staff turnover of employee who originally transferred to the outsourcer is a concern for many companies. Turnover is higher under an outsourcer and key company skills may be lost with retention outside of the control of the company.

In outsourcing offshore there is an issue of staff turnover in the outsourcer companies call centers. It is quite normal for such companies to replace its entire workforce each year in a call center.[19] This inhibits the build-up of employee knowledge and keeps quality at a low level.

[edit] Company knowledge
Outsourcing could lead to communication problems with transferred employees. For example before transfer staff have access to broadcast company e-mail informing them of new products, procedures etc. Once in the outsourcing organization the same access may not be available. Also to reduce costs, some outsource employees may not have access to e-mail, but any information which is new is delivered in team meetings.

[edit] Qualifications of outsourcers
The outsourcer may replace staff with less qualified people or with people with different non-equivalent qualifications.[20]

In the engineering discipline there has been a debate about the number of engineers being produced by the major economies of the United States, India and China. The argument centers around the definition of an engineering graduate and also disputed numbers. The closest comparable numbers of annual gradates of four-year degrees are United States (137,437) India (112,000) and China (351,537). [21][22]

[edit] Work, labour, and economy

[edit] Net labour movements

[edit] Productivity
Offshore outsourcing for the purpose of saving cost can often have a negative influence on the real productivity of a company. Rather than investing in technology to improve productivity, companies gain non-real productivity by hiring fewer people locally and outsourcing work to less productive facilities offshore that appear to be more productive simply because the workers are paid less. Sometimes, this can lead to strange contradictions where workers in a third world country using hand tools can appear to be more productive than a U.S. worker using advanced computer controlled machine tools, simply because their salary appears to be less in terms of U.S. dollars.

In contrast, increases in real productivity are the result of more productive tools or methods of operating that make it possible for a worker to do more work. Non-real productivity gains are the result of shifting work to lower paid workers, often without regards to real productivity. The net result of choosing non-real over real productivity gain is that the company falls behind and obsoletes itself overtime rather than making real investments in productivity.

[edit] Standpoint of labor
From the standpoint of labor within countries on the negative end of outsourcing this may represent a new threat, contributing to rampant worker insecurity, and reflective of the general process of globalization (see Krugman, Paul (2006). “Feeling No Pain.” New York Times, March 6, 2006). While the “outsourcing” process may provide benefits to less developed countries or global society as a whole, in some form and to some degree – include rising wages or increasing standards of living – these benefits are not secure. Further, the term outsourcing is also used to describe a process by which an internal department, equipment as well as personnel, is sold to a service provider, who may retain the workforce on worse conditions or discharge them in the short term. The affected workers thus often feel they are being “sold down the river.”

[edit] The U.S.
‘Outsourcing’ became a popular political issue in the United States during the 2004 U.S. presidential election. The political debate centered on outsourcing’s consequences for the domestic U.S. workforce. Democratic U.S. presidential candidate John Kerry criticized U.S. firms that outsource jobs abroad or that incorporate overseas in tax havens to avoid paying their fair share of U.S. taxes during his 2004 campaign, calling such firms “Benedict Arnold corporations”. Criticism of outsourcing, from the perspective of U.S. citizens, by-and-large, revolves around the costs associated with transferring control of the labor process to an external entity in another country. A Zogby International poll conducted in August 2004 found that 71% of American voters believed that “outsourcing jobs overseas” hurt the economy while another 62% believed that the U.S. government should impose some legislative action against companies that transfer domestic jobs overseas, possibly in the form of increased taxes on companies that outsource.[23] One given rationale is the extremely high corporate income tax rate in the U.S. relative to other OECD nations [24][25][26], and the peculiar practice of taxing revenues earned outside of U.S. jurisdiction, a very uncommon practice. It is argued that lowering the corporate income tax and ending the double-taxation of foreign-derived revenue (taxed once in the nation where the revenue was raised, and once from the U.S.) will alleviate corporate outsourcing and make the U.S. more attractive to foreign companies. Sarbanes-Oxley has also been cited as a factor for corporate flight from U.S. jurisdiction.

Policy solutions to outsourcing are also criticized.